Local investors in government securities heavily subscribed to the re-opened bond issues this month as Treasury taped a staggering Ksh.53 billion from a target of Ksh.40 billion.
The re-opened 5-year and new 2-year Treasury bonds whose auction closed on Wednesday returned an impressive performance rate of 132.52 percent.
Of the Ksh.53.0 billion worth of bids received, 95.75 percent was attributable to the 2-year paper.
From the Ksh.53 billion, the Treasury only accepted Ksh.19.1 billion with a 2-year paper representing 39 percent.
A 5-year paper tapped Ksh.11 billion to represent 60.9 percent of the total bids accepted.
The weighted average for accepted bids for the new two-year and 5-year papers stood at 16.97 percent and 17.9 percent respectively, against coupon rates of 16.9 percent and 16.8 percent.
The placing of aggressive bids by the government has been occasioned by factors including high inflation and rising Eurobond yields which have reflected increased risks on the sovereign.